Encyclopedia of Operations Research and Management Science

2013 Edition
| Editors: Saul I. Gass, Michael C. Fu

Input–Output Analysis

Reference work entry
DOI: https://doi.org/10.1007/978-1-4419-1153-7_200325

The economic theory developed by the economist W.W. Leontief to study a national economy. The approach requires the development of an input–output table (matrix) in which the coefficients in a row indicate how much of the industry designated by that row is required to produce a unit of output for itself and all other industries, and the coefficients in a column represent the amounts of each industry required to produce one unit of output for the industry designated by that column. Under the assumption that the input–output coefficients are stable over the near future and reflect a constant return to scale (linear) relationship, a square set of equations can be established to determine production levels for the industries that meets projected demand.

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© Springer Science+Business Media New York 2013